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STO
The Stochastic Oscillator can help us provide the same visual cues that we obtain from the RSI indicator as well. The difference is that 20 and under imply oversold, 80 and over imply overbought. The Stochastic Oscillator is a momentum indicator that compares the closing price of a stock to the range of its prices over some time. Take a look at the trend on Canopy that I have illustrated below. It seems to be trending up over the bigger picture, but you can see it moves up and down within this range. Observe the indicators talked about here just now. When the Stochastic indicator was overbought, prices were at their peak in this range, and vice versa for their lows. The great thing about these indicators is that it allows you to make more confident decisions on when to buy or sell a particular stock. Incorporate this trading technique into your toolbelt to help give yourself an edge when bottom fishing.